Uncle Sam considers our tax system a “pay-as-you-go” system and expects taxpayers to prepay taxes on income as they receive it throughout the year. Taxes are prepaid through withholding and by estimated tax payments. Since withholding is not an exact science and estimated tax payments are—just as the title suggests—estimates, the IRS, and most states,…
“The “Exit Tax” affects “covered expatriates” – what is a “covered expatriate”?” In a FATCAesque world, where “relinquishments” are becoming a form of “self defense”, it’s important that you understand: Issue A – Who is affected by the Exit Tax? What is a “covered expatriate”? Only “covered expatriates” are subject to the “Exit Tax” 1.…
The value-added tax (VAT) has been adopted by every developed country and most developing countries in the world. There is, however, one exception –The United States. That may be changing as there is currently discussion regarding its adoption in the U. S. The value-added tax is a tax on goods and services and is collected…
ooking ahead to the filing season for this year’s tax returns, a frequent question is whether you should keep track of tax-deductible expenditures or simply settle for the standard deduction amount. Whether you can itemize deductions on your tax return depends on how much you spent on certain expenses during the year. Money paid for…
A properly designed and implemented Construction Tax Planning engagement will proactively identify additional tax savings related to new and / or planned construction projects. It should be duly noted that a Construction Tax Planning engagement should not be confused with a Cost Segregation engagement. As a reminder, there are several noteworthy differences between a Cost…
October 13 – Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 13. Your employer is required to withhold FICA taxes and income tax withholding…
There is an interesting article in the San Jose Mercury News – “Silicon Valley’s stealthy, selfish war on taxes,” by Michelle Quinn (9/11/15). She looks at some of the assessed values high tech firms have noted for their equipment, including $1. She reports that some companies argue that the machine has no value to anyone…
Many churches and other non-profit organizations now accept online and credit card contributions. Typically, the credit card transactions can be made through the organization’s website or through a kiosk located within the organization’s facilities. In recent months the availability of mobile pay devices has become more widely available. These devices allow the organization to use…
All too often, family law courts make rulings that are contradictory to federal tax law, causing confusion and inequity in divorce actions since family court rulings cannot trump federal tax law. An issue for divorced parents is who gets to claim the children for tax purposes. Federal tax law provides that the parent with physical…
You may be able to claim a credit for child and dependent care, if you pay someone to care for your dependent child who is under the age of 13, or for your spouse or other dependent who is not able to care for himself or herself. You must have incurred this expenditure so that…
